Committee Minutes

MINUTES
CITY OF GRAND FORKS - BOARD OF EQUALIZATION
May 18, 1998

The city council of the city of Grand Forks, North Dakota sitting as the Board of Equalization met in the council chambers in City Hall on Monday, May 18, 1998 at 7:00 p.m. with Mayor Owens pre-siding. Present at roll call were Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Beyer, Babinchak, Bakken, Hafner, Hagness - 13; absent: none.

Mel Carsen, city assessor, stated that the city council sits as the Board of Equalization annually to consider the assessments that the assessor has placed on property in Grand Forks, and this is first meeting being held (was postponed from initial meeting five weeks ago). He reported that placed before council members was a 1997 - 1998 comparison of total taxable valuation for the city of Grand Forks, which indicates about an 8% increase over last year's post flood value, and puts us back approximately to the value we had pre-flood 1997. He stated there is about 3% of the valuation yet that is considered flood damaged. He stated that the purpose of tonight's meeting would be to hear protests from individual tax-payers; that they have sent out 2320 notices to various property owners and any property owner, whether notified or not, can protest at this meeting. He stated they have received four written pro-tests which were given to the city auditor. He reported that normally they log the protests tonight and protestors are scheduled before the finance committee for individual hearing on that protest.

RECEIVE PROTESTS ON ASSESSED VALUATION
OF PROPERTY

The city auditor presented the four written protests:
1) Valley Markets, Inc., Hugo Magnuson, for 1631 South Washington Street
2) 636 49th Avenue South, Lois Stawitike
3) 3712 Cherry Street, James W. Bronson
4) Best Western Hotel, 710 1st Avenue North, Ron Madison, general manager.

Mayor Owens asked if there were individuals in the audience who had protests/comments to present, to submit their name and property, and that these items would be referred to the finance committee for consideration.

5) David Perry, 610 North 25th Street, stated that the new appraisal was inaccurate
6) Russ Melland, 620 North 25th Street.
7) Howard McGlynn, 307 Chestnut Street
8) Thomas Wrenn, 2929 Shadow Road
9) Terra International, Inc., 2200 North Washington Street
Jim Schmidt, regional manager. He stated he wasn't here to
protest the value of the building, but that their building was
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taken out by the flood and they rebuilt and that property in 1997 was taxed at $2800 and current tax est. for this year is $29,000; that they stayed in town but could have moved out, that they built on same site and are involved in the ag business and had $5.5 million in damage last year at that facility and a tax burden of $30,000/year is lot of money for them, that they made provisions for flood control of approx. $200,000. (Mayor Owens thanked them for the use of flat-bed trucks during the flood fight)

The city assessor stated that individuals protesting should bring evidence to support some number other than the number the assessor's valued their property at, that they will show finance committee how they arrived at the number they have, and may recheck the property, and prior to the finance committee meeting they will be submitting to the property owners a written report as to what their recommendation will be to the finance committee. He stated that any property owner can meet with them at any time.

Council Member Hagness stated that in the matter of Terra Inter-national, they are not disputing the increased value and that's the only thing the finance committee is going to base their determina-tion on the value, but if other help for Terra perhaps should be referring their company to Urban Development or for other help that businesses have to recover from the flood, that he wouldn't like to see them come to the finance committee and expect his valuation to be lowered when legally there's no way we can. He also noted that there may be home valuations, may have same problems where have made investments in their homes and maybe on same scale as a business, doesn't know if help for them or not, that assessing takes market value to base valuation. He stated they may need to give other opportunities to look at ways to stay in Grand Forks, and Terra should be addressed.

Nancy Melland, 620 North 25th Street, stated that she lives in neighborhood like Chestnut Place in that it's a hollow and filled up with lot of water, that she doesn't have problem paying taxes as soon as neighborhood intact again. She stated she lives across alley from three vacant houses and asked if anything built into system of valuation that would address that, unfair for taxes to increase when vacant houses and boarded up houses, etc. and clearly in an area that has flooded, and doesn't know that resale value will be what they are anticipating it can be.

10) Dan and Kathy Daly, 114 Chestnut Street. Mr. Daly stated their taxes have increased by considerable amount, have done work to their house and understand taxes would be higher but at the same time there are several houses in the neighborhood slated for demolition, understands that the City has some ideas about putting some other structures into that area, etc. and doubts that he would be able to sell his house for appraised value and not fair
reflection of what the situation is. It was noted that they spoke
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with few realtors and their market assessment was considerably less than assessor's value; that they remodeled their home because had to - 25% damage to house.

COUNCIL MEMBER KLAVE REPORTED PRESENT

Council Member Polovitz reported that Flood Response Committee has been looking at what to do in those particular neighborhoods, where houses within it will be acquired and demolished or rehabbed, and that's major concern that what do with those pro-perties, either enhance neighborhood or not, need to be very careful about that, and need to address that.

Council Member Hamerlik stated that there is another concern expressed many times, the depreciation of the property - but also the safety of the neighborhood as these houses are ransacked, etc. and security problems for children, etc. which could affect de-preciation of those properties. He stated that this should be looked at by Flood Response Committee because this makes difference in how to proceed with those properties; that if houses sold within the region at certain market value that doesn't mean that equates throughout the whole region when area considered somewhat blighted because of severe damage by the flood.

11) Leonard Grabanski, 2429 Glen Circle, purchased house in November and received 15% increase in taxes, and no improvements in the house; vacant houses next door with no repairs.

Council Member Beyer stated that some of these pocket neighborhoods that have boarded up houses, etc. should be assessing department that has to decide whether that property is impacted.

Council Member Glassheim stated that only thing to get to Flood Response is that in cases where City is going to have ownership and where City's plans in the future determine how neighborhood going to look like, assessing has no control over that, and some depart-ment has to plan for these neighborhoods and have feedback into assessing's judgment about what going to be.

12) Mildred Koth, 706 North 25th Street.

Council Member Glassheim asked for clarification on the increases that seems high because of number of houses taken out, and asked Mr. Carsen what is increase of value of existing places and what is new construction. Mr. Carsen reported they were working on break-down but couldn't get numbers to fully total, but will have that information soon, but thinks reevaluation on residential amounted to about 2% increase overall, and increased residential by 3% inflation, but when figured in about 2% increase, new construction amounts to about 1.5% and some property exempt before and now
taxable of about 2%, that properties sold, but will have a more
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complete picture of this later.

There were no additional protests, and protests were referred to the finance committee for consideration. It was reported that the finance committee will be meeting at 1:00 p.m. on Friday, May 29, to consider these items.

ADJOURN

It was moved by Council Member Bouley and seconded by Council Member Hamerlik to recess to June 1, 1998. Carried 14 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor